Ava Labs predicts that cryptocurrency startups will attract $25 billion in venture capital by 2025.

[Coin World] Michael Martin, head of the Codebase incubator at Ava Labs, stated in an interview that venture capital firms are expected to invest up to $25 billion in crypto startups by 2025. He pointed out that a series of favourable events are forming a "perfect storm" that attracts capital into the crypto industry, including Circle's successful listing, market recovery, Stripe's acquisition of Privy, Wall Street's increased investment in Blockchain, and clearer regulatory rules for digital assets. Martin believes that these factors will boost investor confidence in early-stage real-world Blockchain companies. This week, 12 crypto projects have completed financing, raising a total of $121 million, bringing the total financing amount to $13.2 billion since 2025, exceeding last year's level by 40%, and is expected to surpass PitchBook's previous forecast of $18 billion. Martin's expectations align with those of Mike Giampapa from Galaxy Ventures. Both believe that former U.S. President Trump, through the "Genius Act" and pushing Congress to consider more crypto legislation, has provided a clear compliance pathway for financial institutions and tech companies to further engage in the digital asset space. However, Martin also warned that if publicly listed crypto companies like Circle and certain trading platforms underperform expectations, or if the macroeconomic environment worsens due to uncertainties such as tariffs imposed by the Trump administration, it could impact investor confidence and delay the pace of capital deployment.